Banque Saudi Fransi (BSF), part-owned by Credit Agricole, will close a SR1.9 billion ($506.6 million) Lower Tier 2 Islamic bond issue today (Tuesday), a source familiar with the matter said. The subordinated sukuk will boost Banque Saudi Fransi’s supplementary capital reserves, or Tier 2 capital. Bonds and sukuk issued to raise Tier 2 capital are usually classed as subordinated debt, meaning they would be below secured creditors in the event of any restructuring.
Banks in the Kingdom have been boosting capital reserves through debt issuance this year, despite having healthy levels in comparison to international peers, as they look to replenish reserves after strong lending growth in recent years……………………………………….Full Article: Source

Malakoff Corp Bhd’s move to buy Hicom Power Sdn Bhd for RM575 million will be funded primarily by a sukuk issuance. This is seen as a move to strengthen the MMC Corp Bhd’s energy utilities subsidiary before its initial public offering (IPO) in the second-quarter of next year.
The acquisition of Hicom Power, an operation and maintenance company for power plants, will be funded by issue of sukuk worth RM460 million while the rest will be paid through internally generated funds……………………………………….Full Article: Source

Australia’s first Islamic superannuation fund is being launched in Sydney. It follows similar products overseas, where customers can choose a superannuation fund in line with Islamic principles.
The fund is called ‘Personal Choice, Private Era’ and is being run by private Islamic wealth management company Crescent Wealth, through the Association of Independently Owned Financial Professionals’ personal choice category, called ‘Personal Choice Private e-wrap………………………………………..Full Article: Source

National Asset Management Limited (NAMAL) announced the launch of the NAMAL Sharia Fund, a Sharia compliant Unit Trust. The NAMAL Sharia Fund offers investors an opportunity to invest in a diversified portfolio of Sharia compliant equities listed on the Colombo Stock Exchange with the objective of maximising medium to long term returns. The Initial Public Offering (IPO) will commence today (17th December 2012).
NAMAL managed the first Sharia compliant Unit Trust in Sri Lanka – the NAMAL Amana Equity Fund - a five year close ended Unit Trust from 2007 to 2012. In the past year the Fund generated 5.60% in returns compared to the ASPI which declined by 11.22%. The Fund generated a 99% return to investors during the period 2007-2012………………………………………..Full Article: Source

UEM Land Bhd, Malaysia’s biggest property company by market value, started marketing RM600mil sukuk, its first issuance of syariah-compliant Islamic bonds, two people familiar with the sale said.
The company was seeking to price the five-year sukuk to yield 4.25% to 4.4%, said the people who asked not to be named as the information is private. That’s as much as 114 basis points above similar-maturity non-Islamic government debt, according to Bank Negara Malaysia index………………………………………..Full Article: Source

FWU AG Group (FWU), a Munich-based financial services company, recently issued a US$55,000,000 Sukuk - the first ever Sukukissuance by a German corporate and the largest ever Sukuk from a European Corporate. This is also the first Sukuk to utilize a computer software programme and intellectual property rights under an Ijara structure.
FWU, which primarily offers global Takaful (Islamic insurance) solutions through strategic cooperation and distribution arrangements in Europe, the Middle East and Malaysia, entered into the transaction through the Dubai branch of its subsidiary FWU Dubai Services GmbH. The ultimate financiers were GCC-based investors represented by Takaful companies that have assisted FWU in raising funding under the Ijara-based (sale and leaseback) method. (Press Release)” target=”_blank”>Source

Standard Chartered Bank has launched an Islamic version of its online banking platform, Straight2Bank which will be offered in the United Arab Emirates, Bangladesh, Bahrain, Pakistan and Malaysia.
The new Shariah compliant platform, which is aimed at Standard Chartered’s growing Islamic customer base including SMEs, will give branchless access to cash management, trade, securities services and reporting………………………………………..Full Article: Source

BankDhofar is ready to launch ‘Maisarah’ Islamic banking services, subject to the Central Bank of Oman (CBO) approval. ‘Maisarah’, meaning ease or comfort, will be a fully serviced Islamic window which will enable customers to access Sharia- compliant products and services through its highly skilled Islamic banking division which was established at the start of the year.
An extensive feasibility study into Islamic banking was conducted by BankDhofar as a direct response to the Royal Decree issued by His Majesty Sultan Qaboos bin Said in order to ensure that the bank offers its customers a best in class Islamic banking experience………………………………………..Full Article: Source

The Islamic Development Bank is offering a new program for the citizens of its member countries for 2013/2014 academic year, Education Ministry of Azerbaijan said.
The program includes studies in doctoral programs in a number of leading universities of the world, and a further research work. Persons wishing to participate in the program should submit their documents to the Ministry of Education until December 24………………………………………..Full Article: Source

FWU AG Group (FWU), a Munich-based financial services company, recently issued a US$55,000,000 Sukuk – the first ever Sukuk issuance by a German corporate and the largest ever Sukuk from a European Corporate. This is also the first Sukuk to utilize a computer software programme and intellectual property rights under an Ijara structure.
FWU, which primarily offers global Takaful (Islamic insurance) solutions through strategic cooperation and distribution arrangements in Europe, the Middle East and Malaysia, entered into the transaction through the Dubai branch of its subsidiary FWU Dubai Services GmbH………………………………………..Full Article: Source

Standard Chartered Bank has announced the launch of an Islamic version of its award-winning online banking platform, Straight2Bank. The enhanced platform expands client access to the Bank’s Islamic products by providing its growing Islamic customer base a secure online portal that is compliant with Shariah laws.
The existing Straight2Bank platform was enhanced to meet the needs of the Bank’s Islamic clients, presenting a convenient, branchless access channel to cash management, trade, securities services and reporting. (Press Release)

First Resources Limited, a leading palm oil company listed on the Main Board of the Singapore Exchange, today successfully issued its second ringgit-denominated sukuk of RM400 million under its Sukuk Musharakah Programme of up to RM2 billion, established on July 9 this year.
OSK Investment Bank Bhd and RHB Investment Bank Bhd are the Joint Principal Advisers and Joint Lead Arrangers for the Sukuk Musharakah Programme and Joint Lead Managers for the distribution of the IMTNs in Malaysia………………………………………..Full Article: Source

The Samalaju Industrial Port Sdn Bhd (SIPSB) plans to raise up to RM1.35bil from a share placement and issuance of Islamic securities or sukuk to fund the development of the Samalaju port project in Bintulu. The company is a wholly-owned subsidiary of Bintulu Port Holdings Bhd (BPHB).
BPHB chief executive officer Datuk Mior Ahmad Baiti Mior Lub Ahmad said the parent holding was expected to raise RM400mil via the placement of up to 15% of its issued and paid-up capital to its major shareholder(s)/(offerors(s), and up to RM950mil from the issuance of sukuk………………………………………..Full Article: Source

Islamic Corp. for the Development of the Private Sector, the investment arm of the Saudi Arabia-based Islamic Development Bank, started a fund to finance renewable- energy projects in Central Asia and plans another in Africa.
The $35 million Central Asian fund is based in Kazakhstan, Islamic Corp.’s Chief Executive Officer Khalid al-Aboodi said today in Manama, Bahrain. The North Africa fund, expected to be about $35 million to $50 million in size, will open soon………………………………………..Full Article: Source

Turkey’s largest Islamic lender Bank Asya plans to issue a dollar-denominated sukuk, or Islamic bond, of around $200-$300 million within the next two to three months, chief executive Abdullah Celik said.
The Islamic lender will also finalise the issuance of its lira-denominated sukuk of between 100-150m lira ($56-84m) within the next month-and-a-half, Celik said in an interview………………………………………..Full Article: Source

Thomson Reuters, a leading source of intelligent information for businesses and professionals, has launched the new Islamic Finance Gateway (IFG) community, a multi-platform forum for experts and professionals in the Islamic finance industry.
The IFG Community gathers the industry online, and face-to-face at roundtable sessions and conferences. The online community forum gives members free access to the latest market reports, insider information, and market news and analysis. Community members also receive daily and weekly briefings that contain essential daily news and market movement coverage of all relevant Islamic asset classes. (Press Release)

Oman has paved the way for Islamic banks to start operations with the announcement of a Royal Decree amending the banking law to accommodate Sharia-compliant financial products. The two Islamic banks bank Nizwa and alizz islamic bank and window operations of conventional banks are expected to start within two months from now.
The Central Bank of Oman (CBO) may announce the detailed regulation, said a banking source. “We have all submitted application for starting window operation. Now the central bank can issue licence for us to offer Sharia compliant products. But I don’t know the timeframe,” said a senior banker………………………………………..Full Article: Source

Close on the heels of declaring strong third quarter results, Bank Sohar was awarded with an Investment Banking License by the Capital Markets Authority of Oman. “This license is very important because it allows Bank Sohar to offer more products and services to its clients and relationships”, said Dr Kalmoor, CEO of Bank Sohar.
Bank Sohar GCC Fixed Income Fund (“Fund”), which is a separate share class within the Rasmala GCC Fixed Income Fund, seeks to provide investors with regular coupon distributions and capital appreciation by investing primarily in investment grade bonds issued by governments, government related entities and corporates. (Press Release)

International Islamic Liquidity Management Corporation (IILM) is likely to issue its maiden sukuk by early next year, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said.
She said the IILM Board will be having a board meeting next week in the Middle East, of which she will be attending.”Hopefully, following the board meeting, it will look into early next year for such an issuance,” she said………………………………………..Full Article: Source

Cagamas Bhd, Malaysia’s second-largest issuer of debt securities, saw total issuance grow 76 percent to 5 billion Malaysian ringgit ($1.64 billion) this year.
The company met its expected total issuance this year after the recent sale of a 1.45 billion Islamic bond, the company said in a statement on Thursday………………………………………..Full Article: Source

The Qatar National Bank has launched a debt fund, becoming the first bank in Qatar to launch a fund of this kind. The QNB Debt Fund will invest in debt securities issued by GCC-based sovereign and corporate entities and is open to retail and institutional investors.
QNB said GCC bonds offer a “combination of attractive rates of return (and superior levels of underlying credit risk) which is not generally available elsewhere”………………………………………..Full Article: Source

NCB Capital, the largest asset manager in Saudi Arabia, has decided to widen its investor base by launching a range of Dublin-domiciled Islamic mutual funds.
NCB Capital, which manages more than $12bn in assets, has launched two Ucits-compliant funds that invest in Saudi Arabian and Gulf Co-operation Council (GCC) equities, according to Reuters………………………………………..Full Article: Source

The first international mutual funds run by a Saudi Arabian manager will be launched from Dublin this month. NCB Capital, the investment banking arm of Saudi Arabia’s largest bank, will launch equity funds investing in Saudi Arabia and the wider Gulf Co-operation Council (GCC) region. They will be run in accordance with the principles of Islamic Sharia law.
“This is a continuation of our strategy to be a sizeable player in the sharia market,” Faysal Badran, chief investment officer at NCB Capital, said………………………………………..Full Article: Source

Barwa Bank’s newly launched The First Investor GCC Equity Opportunities Fund attracted nearly QAR 90 million during its first month of subscription. Going forward, subscriptions will be on a monthly basis.
The Shari’ah-compliant fund, launched at the end of September, has started investing in equities and equity-related securities listed on exchanges within the Gulf Cooperation Council countries………………………………………..Full Article: Source

Saudi Hollandi Bank (SHB), the oldest banking franchise in Saudi Arabia, has completed a SR1.4 billion ($373.3 million) Islamic bond issue. The subordinated sukuk, which will boost the bank’s Tier two capital ratio, has a seven-year maturity but can be redeemed by the issuer after the end of the fifth year, the statement said.
The sukuk priced at 1.15 percent over the six-month Saudi interbank offered rate, it added. Shareholders approved the issue of the sukuk in early October………………………………………..Full Article: Source

The GCC foreign bonds have grown at an annual rate of 21 percent since Q1 2007. The rapid growth has happened partly to compensate for the decline in international syndicated loans, which fell from $112bn in 2007 to $32bn in 2011 and just $8bn in the first half of 2012.
The decline in the international loans is most probably a result of global banks, reducing their international exposure following the 2008 financial crisis. The governments and corporations in the GCC are increasingly looking to the bond markets as an alternative source of financing for the substantial projects and corporate expansions underway in the region………………………………………..Full Article: Source

National Bank of Abu Dhabi (NBAD) has issued a 500 million Malaysian ringgit ($163.4 million) Sukuk, its third issuance denominated in currency, the bank announced in a statement. The new Sukuk is the first ever issue of a subordinated debt by a non-Malaysian FI in Malaysia.
It was issued for 15 years at a coupon of 4.75 per cent following strong investor demand, the bank said. HSBC Amanah Malaysia Berhad, Maybank Investment Bank Berhad, Standard Chartered Saadiq Berhad, and National Bank of Abu Dhabi Malaysia Berhad were the joint lead managers……………………………………….Full Article: Source

Secura India Real Estate Fund, the first Sharia compliant venture capital fund has launched its second scheme of real estate fund with a size of Rs 50 crore. It is promoted by Kozhikode based by Secura Investment Management (India) Pvt. Ltd.
MA Mehaboob, managing director of the Secura Investment Management, said the fund seeks to make investments in privately negotiated equity and equity linked investments in unlisted or listed companies in sectors related to real estate activities in Kozhikode and Kochi primarily………………………………………..Full Article: Source

Al Ramz Securities, one of the UAE’s leading brokerage houses, has once again reaffirmed its pioneering role in local industry by introducing the country’s first-ever Islamic Margin Trading service.
The service is patterned after the ‘Murabaha’ type of Shariah-compliant ‘cost-plus’ financing, where a fund purchases goods and resells them to a third party at an agreed-upon price. The price includes the cost of the goods plus a profit margin, with the cost and margin predetermined by the parties involved in advance……………………………………….Full Article: Source

The Government of Indonesia has issued its third sovereign Sukuk. The $1 billion, 10-year bond, is part of a $3 billion trust certificate issuance program. It was rated BB+ by Standard and Poor’s, BBB- by Fitch and Baa3 by Moody’s.
Indonesia was able to price the Sukuk at 3.3 per cent, at the tight end of final guidance of 3.3-3.4 per cent and 20 basis points tighter than the initial price guidance of 3.5 percent provided before the sale. ……………………………………….Full Article: Source

Tilal Development Company, the Sultanate’s leading real estate firm that has been credited with the inception of the ground breaking Muscat Grand Mall project, announces its intention to raise OR53m by way of Islamic debt instrument or sukuk, which will be the first such issue in Oman in order to put into motion plans for expansion of the complex that houses Muscat Grand Mall.
Commenting on this historic announcement, Hassan Jaboub, General Manager of Tilal Development Company said, “These are very exciting times for us. The Muscat Grand Mall, our finest venture has seen unparalleled success and it is only natural for us to move forward the expansion way.” Discussing the instrument, Jaboub commented, “67,000 square metres of shopping area at Muscat Grand Mall are fully leased and already operational. Additionally, owing to demand and market interest in our project, the expansion was an effortless decision. Towards the same, we are also glad to be pioneering the sukuk market in Oman and hope that it will grow exponentially here from.” (Press Release)

Oman’s Al Madina Real Estate plans to issue the country’s first sukuk or Islamic bond in the first quarter of next year, its chief executive said. The sultanate is about to introduce Islamic finance, becoming the last of the Gulf states to do so, and the government is expected to issue regulations covering the industry in coming months.
The company plans to issue a five-year, $130 million sukuk through its sister firm Tilal Development Company, said chief executive Abdlrehman Awadh Barham………………………………………..Full Article: Source

The Islamic finance industry in Sri Lanka achieved another milestone in its fast evolving history, with the launch of Sri Lanka’s first-ever Shariahbased income fund recently. Structured as a unit trust, the Comtrust - Adl Mudarabah Fund is the second unit trust to be launched under the combined expertise of Adl Capital Limited and Comtrust Asset Management (Pvt.) Limited.
In 2011, Adl Capital and Comtrust successfully pioneered Sri Lanka’s first open-ended Shariah compliant equity fund, ‘The Crescent i-Fund’ and the launch of this income fund, which would invest only in Shariahcompliant money market instruments rather than equity, would offer investors with an alternative investment opportunity that offers regular returns………………………………………..Full Article: Source

Heraymila Capital (Pvt) Ltd. (HCL) and Amana Capital Ltd. (ACL) jointly launched the Amana-Heraymila Shariah Fund, a balanced unit trust fund that will invest in Shariah-compliant listed equity and income securities. The initial unit offerperiod is from November 12, 2012 till 4.30 p.m. on November 18, 2012, and a unit is priced at LKR 10 during this period. The minimum investment in the Fund is LKR 10,000.
The Fund will offer easy accessibility, diversification, liquidity and stringent Shariah compliance to local and foreign investors. The Islamic financial services industry is gathering momentum in Sri Lanka in line with its growing popularity overseas. Global Islamic financial assets are expected to reach US$ 5 trillion in 2012………………………………………..Full Article: Source

Oman’s Al Madina Real Estate plans to issue the country’s first sukuk or Islamic bond in the first quarter of next year, its chief executive told Reuters on Wednesday.
Oman is about to introduce Islamic finance, becoming the last of the wealthy Gulf Arab states to do so, and the government is expected to issue regulations covering the industry in coming months………………………………………..Full Article: Source

Tilal Development Company SAOC plans to raise 53 million rials ($138 million) in the first quarter in Oman’s first corporate Islamic bond sale to fund a mall expansion in the Persian Gulf nation.
The real estate company will use proceeds of the sale to expand the Muscat Grand Mall in the Omani capital, Tilal said in an e-mailed statement. Amanie Advisory House of Oman is advising on the issuance, it said. The sale will be the first for any company in the majority Muslim nation, according to data compiled by Bloomberg………………………………………..Full Article: Source

Infinity Consultants, a corporate finance advisory firm, has launched Zayd Chit Funds, a Sharia-compliant chit fund. “The chit fund is expected to be operational shortly in Bangalore and is compatible with the Chit Funds Act of 1982,” Saif Ahmed, managing partner, Infinity Consultants, said.
“The speciality of our fund schemes is that they allow one to utilise hard-earned money in a halal way, which is not the case with other chit funds,” he added………………………………………..Full Article: Source

Barwa Bank, one of Qatar’s fastest growing Shari’ah compliant banking service providers, formally launched its Private Banking proposition in style, while making a significant contribution to future of children’s education, with an exclusive exhibition of coloured diamonds, co-hosted with renowned fashion house and jeweller, Asprey, London on the 13th of November, at the Museum of Islamic Art.
Hosting the event was His Excellency Sheikh Mohammad bin Hamad bin Jassim al Thani, Chairman of the Barwa Bank Group and, John Rigas, Chairman of Asprey, as well as important Barwa Bank clients, senior management and employees. (Press Release)

Banque Saudi Fransi, which is part-owned by Credit Agricole, will issue up to 2.5 billion riyals ($667 million) in secondary sukuk, or Islamic bonds, after shareholders approved the move, the lender said on Tuesday.
The move is aimed at shoring up its supplementary capital reserves, or Tier 2 capital. Bonds and sukuk issued to raise Tier 2 capital are usually classed as subordinated debt, meaning they would be below secured creditors in the event of any restructuring………………………………………..Full Article: Source

A new web portal launched in Egypt says it is the first crowd funding service in the country that obeys the principles of Islamic finance. Crowd funding allows large numbers of investors to become shareholders in a project by contributing very small amounts of money, without going through a stock exchange.
“There are banks and financial institutions funding micro-projects and other large projects with more than a million dollars…but the projects that need between $50,000 and $300,000 do not find it,” said Shehab Marzban, one of the founders of shekra.com………………………………………..Full Article: Source

Abu Dhabi Islamic Bank (ADIB) has successfully issued the world’s first Shari’ah- compliant hybrid tier 1 Sukuk and the region’s first publically issued perpetual and tier 1 instrument. This strategic transaction marks a key milestone for the global Islamic finance industry and a major and rare innovation by an Islamic bank.
The $1 billion perpetual non-call six-year issue was priced at an expected profit rate of 6.375 per cent, one of the lowest rates achieved for any perpetual instrument by a global bank………………………………………..Full Article: Source

Tunisia’s moderate Islamist-led government aims to issue 1 billion dinars ($634 million) worth of Islamic bonds next year, the first time the country has used the developing sector to fund public borrowing.
“One billion dinars will be available from the Islamic bonds in the 2013 budget‮‮‮‮ ‬‬‬‬for the first time,” Finance Minister Slim Besbes told state radio. Central bank governor Chadli Ayari told Reuters last month that Tunisia planned to issue Islamic bonds early next year………………………………………..Full Article: Source

Retail investors in Singapore and Thailand will soon be able to take part in Malaysia’s largest infrastructure project, as the country’s stock exchange prepares to issue the first tranche of a 1.5 billion ringgit retail Islamic bond or sukuk.
DanaInfra Nasional Bhd, owned by the Ministry of Finance, is scheduled to issue the tranche, a 300 million sukuk, by the end of the month. It will be the first retail bond to rely on the ASEAN Trading Link, which connects the stock exchanges in Malaysia, Singapore and Thailand. Indonesia, Philippines,Vietnam are set to join the trading link in the near future………………………………………..Full Article: Source

Abu Dhabi Islamic Bank, the emirate’s largest sharia-compliant lender, launched a $1 billion sharia-compliant hybrid Islamic bond, or sukuk, on Thursday to boost its core capital, arranging banks said, after attracting strong demand.
The Tier 1 perpetual sukuk, which has no defined maturity date, was launched at a profit rate of 6.375 per cent, at the tighter end of revised guidance, after orders totalled over $15 billion………………………………………..Full Article: Source

The Tunisian government will issue Islamic bonds for the first time in 2013 in an effort to close its budget deficit, according to Finance Minister Slim Besbes.
Besbes told Tunisan state radio yesterday that the government will issue 1 billion dinars ($630 million) in Islamic bonds (known as Sukuk), helping reduce the deficit to 6 percent of GDP from 6.6 percent in 2012………………………………………..Full Article: Source

The Islamic Corporation for the Development of the Private Sector (ICD) plans to open two new Islamic banks in Mali and Benin next year as part of efforts to expand the industry’s consumer base in Africa, its chief executive said.
“The issue for Islamic banking in Africa is not on the demand side which is potentially massive, but rather it is a supply side issue,” Khaled Al-Aboodi said in a speech in Djibouti this week………………………………………..Full Article: Source

Saudi Arabian dairy and food producer Almarai Co plans to issue the second tranche of a riyal-denominated Islamic bond programme in the coming months to private investors, the company said in a bourse on Monday.
The Gulf’s largest dairy firm raised 1 billion riyals ($266.6 million) through the first tranche in March in a deal which was 4.7 times oversubscribed. “This second tranche of sukuk will be a private offering to sophisticated investors resident in the Kingdom of Saudi Arabia,” the company statement said………………………………………..Full Article: Source

The Finance Ministry plans to sell as much as RM5.3bil of Islamic bonds under a 20-year programme to help the nation’s loss-making carrier buy new aircraft, according to two people familiar with the deal.
The state-guaranteed notes would be sold by Turus Pesawat Sdn Bhd, a special-purpose vehicle, with marketing starting this week, said the people who declined to be named because the information is private. Malaysian Airlines (MAS) announced in May it planned to lease six Airbus A380s and two A330s for RM5.3bil that would be purchased by the Government………………………………………..Full Article: Source

An Omanese real estate firm is expected to announce its plans to raise funds by way of an Islamic debt instrument or sukuk. It was reliably learnt that Tilal Development Company, which developed the Muscat Grand Mall, will announce their sukuk plan.
But it is not clear whether the company is raising money from within Oman or from some other GCC countries since the regulations are not in place. The Capital Market Authority is yet to announce the regulation for takaful firms and sukuks. Further, those attending the forum will be privy to strategic alliances and MoU signings which will be of direct impact to the Islamic finance community in Oman………………………………………..Full Article: Source